Skip to main content

Native American Tribe Sues HUD Over Mortgagee Letter

Apr 23, 2019
The U.S. Department of Housing & Urban Development (HUD) has charged Plano, Texas landlords Quang Dangtran and his wife, Ha Nguyen, with violating the Fair Housing Act by refusing to lease a room to a prospective tenant because she is African-American

The Department of Housing and Urban Development (HUD) has been sued by a Native American tribe that claims a recently published Mortgagee Letter will deprive the tribe of an important revenue source.
 
Utah’s Cedar Band of Paiutes and two of its wholly-owned companies, the Cedar Band Corp. and the CBC Mortgage Agency (CBCMA), filed a lawsuit in the U.S. District Court for the District of Utah seeking an immediate halt to HUD’s Mortgagee Letter 19-06, claiming that it will prohibit CBCMA from participating in home-purchasing assistance programs outside of its tribal sovereignty. CBCMA is a governmental housing agency that provides down payment assistance to borrowers planning to buy a mortgage insured by the Federal Housing Administration. The tribe claims the Mortgagee Letter was released without prior notice or comment input and was issued outside of the traditional process that requires presidential approval. The tribe added that the Mortgagee Letter encroaches on tribal sovereignty and goes against federal policy on Native American economic development.
 
“The harm that HUD has inflicted on CBCMA and the members of the Cedar Band with this administrative action is staggering,” said Lead Counsel Helgi C. Walker of Gibson Dunn & Crutcher LLP, who is representing the tribe. “CBCMA has operated as a governmental provider of down payment assistance for years, indeed pursuant to regulations that expressly allow tribes to provide down payment assistance. But now HUD has changed the rules without notice, throwing CBCMA and borrowers into a state of chaos. We intend to rectify this unlawful agency action and vindicate our client's legal rights.”

 
About the author
Published
Apr 23, 2019
CFPB’s Days Numbered?

‘This Spigot … Is Now Being Turned Off’ said Acting Administrator Vought

Treasury Secretary Scott Bessent Named CFPB Acting Director

Bessent says he will work to lower costs, accelerate economic growth

Trump Fires CFPB Director Chopra

Chopra posts a letter to X with his final statements

'Lead Generator Loophole' Remains Open, Court Decides

Lead publisher, LendingTree, commends the court's decision to vacate one-to-one consent rule

Jan 30, 2025
Realogy Settles TCPA Class Action Lawsuit For $20M

The TCPA's new one-to-one consent rules, impacting lead generation, take effect today

Jan 27, 2025
Six Mortgage Brokerages Sued Over Alleged Kickback Scheme

Pennsylvania AG claims up to $1M swapped hands between agents and brokers

Jan 24, 2025